Poor Delivery volume & PCR. Banknifty is weaker than Nifty. Time to sell Put in Nifty and Call in Banknifty

Date: 30/May/2017                                                                          
Time: 7:20 am  
VIX: 11.79             SGX Nifty: 9589               FII: -710 Cr                DII: +291 Cr
Open
Interest Analysis
Index
Max Pain
PCR
Highest
PE
CE
Highest Increase
PE
          CE
Nifty
9400
1.13
9400
9700
9500 (27%)
9700 (13%)
Banknifty
23200
0.92
22000
23500
23000 (21%)
23500 (17%)
                              
Technical
Data and Analysis
Index
Support
Resistance
4 Hour Trend
Daily Trend
Weekly Trend
Nifty
9380
9634
Up
Up
Up
Banknifty
22264
23310
Up
Up
Up
Future
position and Volume Analysis (Nifty and Banknifty stocks)
Long Build Up
Profit Booking
Short Build Up
Short Covering
High Delivery Volumes
HDFC, Infratel,
Sunpharma, TechM,
Auto, Ultratech, Infy, Bhel, Coal India
Reliance, Cipla
HDFC
Nifty
(Over all FNO Position: Neutral)
·                    
FII selling is not much and huge in-flow will save the market.
·                    
Global market is flat and SGX nifty is slightly down.
·                    
More shorts are getting added than longs.
·                    
Highest CE is at 9700 and highest PE is at 9400. Hence market
may trade in very narrow range.
·                    
Huge number of PE added to 9400 and hence market has least
chance to go down below 9400.
·                    
PE added at 9500 says that Nifty is not weaker than Banknifty.
·                    
Max Pain came down 9400 and PCR is normal.
·                    
Reliance and ITC are saving Nifty downfall as of now.
·                    
Poor delivery volumes, market will not make big movement.
Banknifty (Over all FNO Position: Slightly
bearish)
·                    
ICICI Bank is up and HDFC Bank is down in USA.
·                    
Highest CE is at 23500 and good amount of 23000 PE is also sold.
·                    
Banknifty is not bullish anywhere as per OI data.
·                    
Banknifty will try to get traded in narrow range.
·                    
Max Pain Jumped up to 23200
·                    
PCR is poor and no delivery volumes.
·                    
Great time to sell CE in weekly contract.
Executed Trades
ü 
Sold out 23600 CE and additional 23700 CE.
ü 
Booked profit in 23900 CE.
ü 
Having 5% free cash.
Trading Plan
Ø 
Planning to exit few weekly contracts and will move to monthly
contracts to diversify.
Ø 
Planning to sell PE in Nifty and CE in Banknifty.
Open Positions

Product Instrument Qty. Avg. price LTP P&L Chg.
NRML BANKNIFTY01JUN1723700CE NFO -1000 12.19 8.80 +3394.00 -27.83%
NRML BANKNIFTY01JUN1722400PE NFO -600 18.54 5.60 +7764.00 -69.80%
NRML BANKNIFTY01JUN1722500PE NFO -600 14.66 8.00 +3996.00 -45.43%
NRML BANKNIFTY01JUN1722600PE NFO -600 16.30 13.00 +1978.00 -20.23%
NRML BANKNIFTY01JUN1722700PE NFO -600 13.00 18.75 -3450.00 +44.23%
NRML BANKNIFTY01JUN1722800PE NFO -600 18.70 30.15 -6868.00 +61.20%
NRML BANKNIFTY01JUN1723600CE NFO -600 16.55 14.50 +1232.00 -12.40%
NRML BANKNIFTY01JUN1723800CE NFO -600 9.73 4.95 +2868.00 -49.13%
TOTAL 10,914

Jegathesan Durairaj, a mathematician by qualification, an Ex-software professional and now a full time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity in twitter as itjegan, with huge followers. He had won Zerodha 60 Day Challenge – 10 Times round-the-clock. He is one of the prime Option Writing Trainer and tutored close to 1000 members till now.

He is the Mastermind of CapitalZone – Active Option Trading where Traders can avail Trading Chart with customised indicators, FNO tools and Payoff analysis. His keynote is to provide whole FNO deets to be handy for Traders in a sole place.

Now he is taking more heed on hedging portfolio in Option Writing where we might subject to more market risk. He is streamlining his strategies often and improving perpetually. At this time unfolding ways to measure good-quality Trend Following System.

Conducting workshop in all Metro Cities (Delhi, Mumbai, Bangalore, Chennai and Coimbatore) often based on queries from Traders.

 

 

2 comments found

  1. hi,
    good talking to you. learning a lot from your trades. keep booking profits.
    sekar erode

Comments are closed.